Higgins secures $1.3 bn NZTA road maintenance contracts

Fletcher Building announced its subsidiary, Higgins Contractors, has been appointed as preferred contractor for three Integrated Delivery Contracts (IDC) with the New Zealand Transport Agency Waka Kotahi (NZTA). These 10-year contracts, commencing April 2026, cover state highway road maintenance in the East Waikato, Bay of Plenty, and Hawkes Bay regions. Higgins Contractors will now work with NZTA to finalize these agreements.

The revenue from these new contracts is estimated at approximately $1.3 billion over their 10-year term, maintaining a similar value to the previous model despite covering a significantly larger area in the Bay of Plenty region. Higgins currently delivers road maintenance in these regions, though Manawatu will not be retained under the new system.

Andrew Reding, Fletcher Building’s managing director and group chief executive officer, highlighted that the contracts represent a long-term pipeline of work, reflecting the high level of trust Higgins has earned from NZTA. The company anticipates continuing its positive relationship with NZTA by delivering cost-effective and quality road maintenance services.